Trade and the Number of Optimum Currency Areas in the World

Michael Artis, Marion Kohler and Jacques Melitz

No 1926, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: This paper employs worldwide data on output and bilateral trade in order to identify optimum currency areas (OCA’s) on a global basis. By retaining only two of the many criteria that have been mentioned in the literature on OCA’s, it has been possible to use computer programming to do the identification. Based on the first of the two criteria, relating to trade, some large continental OCA’s can be discerned in the world. Adding the second criterion, which concerns symmetry-of-output-shocks, whittles down the size of the OCA’s. Nevertheless, some significant examples remain in the Americas, Europe and Asia, of which the European and the Asiatic are the most noteworthy.

Keywords: Business Cycles; Optimal Currency Areas; Trade (search for similar items in EconPapers)
JEL-codes: F02 F15 F40 (search for similar items in EconPapers)
Date: 1998-07
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=1926 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:1926

Ordering information: This working paper can be ordered from
http://www.cepr.org/ ... ers/dp.php?dpno=1926

Access Statistics for this paper

More papers in CEPR Discussion Papers from Centre for Economic Policy Research 33 Great Sutton Street, London EC1V 0DX, UK.
Bibliographic data for series maintained by CEPR ().